Tariffs are set to rise to 18% under Trump
This level was last seen around the Great Depression
Things are about to get absolutely crazy…
A thread 🧵
This level was last seen around the Great Depression
Things are about to get absolutely crazy…
A thread 🧵
2/ One Trump policy could negatively impact the economy is tariffs
This looks similar to Herbert Hoover’s trade policies
Which contributed to the onset of the Great Depression
This looks similar to Herbert Hoover’s trade policies
Which contributed to the onset of the Great Depression
3/ Hoover came to power during a booming market but faced rising wealth inequality - a situation that mirrors today’s conditions
His aggressive tariff policies aimed to address those disparities, but ultimately backfired
His aggressive tariff policies aimed to address those disparities, but ultimately backfired
4/ The Smoot-Hawley Tariffs back then raised US tariff rates to 20%, triggering a global trade war
Many people believe this policy played a major role in the market crash that followed
Many people believe this policy played a major role in the market crash that followed
5/ Since then, US tariffs have steadily declined
However, Trump’s proposed trade policies could reverse that trend
Potentially raising rates to nearly 18% - a level that could hurt corporate profits and drag down stock prices
However, Trump’s proposed trade policies could reverse that trend
Potentially raising rates to nearly 18% - a level that could hurt corporate profits and drag down stock prices
6/ For instance, during the Great Depression, profit margins fell from 10–12% to nearly 0%, contributing to a 90% collapse in the US stock market
Tariffs weren’t the only factor behind the crash though - debt, bank failures, and deflation also played roles
Still, trade policies were a significant contributor back then
Tariffs weren’t the only factor behind the crash though - debt, bank failures, and deflation also played roles
Still, trade policies were a significant contributor back then
7/ With corporate profits at all-time highs, a global trade war could reverse that trend
While this might reduce wealth inequality in the long run, falling asset prices could mean considerable short-term financial pain
While this might reduce wealth inequality in the long run, falling asset prices could mean considerable short-term financial pain
8/ The effects of tariffs wouldn’t be felt immediately though
Studies of past trade wars show a lag of about a year between implementation and economic consequences
Depending on Trump’s actions, the impact could hit by 2026
Studies of past trade wars show a lag of about a year between implementation and economic consequences
Depending on Trump’s actions, the impact could hit by 2026
9/ This strengthens our conviction in an economic downturn in 2026
Don’t forget to join Bravo’s Research competition
And take advantage of the 30% DISCOUNT while it lasts at:
bit.ly/BravosResearch
Don’t forget to join Bravo’s Research competition
And take advantage of the 30% DISCOUNT while it lasts at:
bit.ly/BravosResearch
10/ Thanks for reading!
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @bravosresearch for more market insights, finance and investment strategies
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @bravosresearch for more market insights, finance and investment strategies
https://x.com/bravosresearch/status/1894090116160966865
• • •
Missing some Tweet in this thread? You can try to
force a refresh
